Farming
FUW fights for fair funding for farming
THE FARMERS’ UNION OF WALES has launched its ‘Fair Farm Funding’ campaign to highlight the urgent need for the UK Government to clarify funding for the sector in Wales, at its Grand Council meeting in Aberystwyth.
The campaign aims to secure fair funding for farmers in Wales after leaving the EU, ensuring that the industry does not receive less than it did before the UK left the European Union. It also insists that funding for farming should not be subject to the Barnett Formula.
Launching the campaign at the Union’s Grand Council, Managing Director Alan Davies said: “Historically the funding to support farming in Wales has come from the Common Agricultural Policy, but once the UK leaves the EU in March next year that link will be broken.
“Any funding to support agriculture will have to come from the UK Treasury. We’ve already heard that the Government will commit the same amount of funding to agriculture for the rest of this parliament. But there are complexities around how that funding might be allocated.
“If the UK Treasury matches, as is expected, the current EU payments of £3.5 billion to DEFRA to support UK agriculture, there are at least 2 ways in which that money can be allocated to Wales. One method and the one most often used in UK Government financial calculations is to use the Barnett Formula.”
Mr Davies explained that when “new” money is allocated to a government department, generally the “Barnett consequential” for Wales is around 5.6% of the total money allocated. That means that if DEFRA receive £3.5 billion, the “Consequential” for Wales will be around £196 million.
“Wales has historically received around 9.4% of the total EU CAP budget allocation to the UK. That would equate to £329 million. Barnett would reduce our funding by around 40% and that must not happen.
“In order to deliver Fair Farm Funding for Wales it is therefore essential that the UK Government allocate funds outside the Barnett formula. Wales urgently needs certainty that we will receive at least our historical share of the UK’s agricultural and rural development budget promised by Secretary of State Michael Gove, especially as the budget for next year needs to be in place by October this year,” he added.
Quoting Carwyn Jones the First Minister of Wales, Mr Davies told delegates that: “To achieve this will require a new way of working and the FUW was pleased to hear Welsh Government recognise that ‘agricultural funding will have to be held in a separate pot and dealt with in a different way’.”
FUW President Glyn Roberts added: “This year we celebrate 40 years of being formally recognised by the UK Government to exclusively speak on behalf of the farmers of Wales, and let me be clear, there have been few times during that period where the need for our Union has been greater – to fight for not just the survival of our family farms but for a prosperous future for our members and all those who make a living from agriculture.
“With this in mind, we are pleased to officially launch our ‘Fair Farm Funding’ campaign here today.”
Farming
Farmers fight back: Inheritance tax row at Welsh Labour conference
THE Welsh Labour conference in Llandudno, Conwy, on Saturday (Nov 16) became the backdrop for a large and impassioned protest by farmers opposing the Labour government’s controversial inheritance tax changes. Hundreds of farmers descended on the venue with tractors and vehicles, voicing their frustration at what they describe as policies that will devastate rural communities and family farms.
The protest was a coordinated effort by Digon yw Digon (“Enough is Enough”), a group advocating for rural communities. Protesters carried signs reading “Labour War on Countryside” and “No Farmers No Food,” while tractors lined the promenade outside Venue Cymru.
Starmer’s absence deepens anger
Farmers had hoped to confront Prime Minister Keir Starmer directly and present their concerns. However, Starmer avoided the protesters, leaving the venue without meeting them. This decision was sharply contrasted by the actions of former Prime Minister Rishi Sunak, who earlier this year attended the Welsh Conservative Conference and took time to speak with farmers about their challenges.
One farmer remarked, “Starmer didn’t have the guts. He left without facing us.”
The farmers’ message
In lieu of a direct meeting, the farmers delivered a strongly worded letter addressed to Starmer, outlining their grievances:
“Dear Prime Minister,
Croeso i Gymru,
Today you can see the depth of feeling and concerns that you are creating as the PM of this country towards the rural areas and farming community.
The outcome of your Budget highlights the government’s incapacity to look at the position as a whole rather than a tick-box exercise to fulfill your selfless ambition.
The inheritance tax debacle highlights this case. This new tax represents a considerable challenge not only for farmers but also the broader agricultural sector. The £1 million threshold is alarmingly low, and many farmers will face impossible decisions to sell portions of their land to cover these costs. This will affect the smaller family farm the most.”
Why farmers are protesting
The changes announced in the Autumn Budget include:
- A new 20% inheritance tax on farms valued over £1 million.
- Modifications to Agricultural Property Relief (APR) and Business Property Relief (BPR), effective from April 2026.
Farmers fear these changes will force many family-run farms to sell land, leading to reduced food production and driving up food prices.
Becky Wall, a farmer at the protest, made an emotional appeal:
“Please support our farmers; they work hard over long hours to feed us. Without them, we have no food. These changes will also impact small businesses connected to farming, posing a serious threat to our economy and our bellies.”
Rural Wales under pressure
The letter also highlighted the cumulative challenges faced by Welsh farmers, including the draconian impact of Nitrate Vulnerable Zone (NVZ) regulations, increasing incidences of bovine tuberculosis (TB), and uncertainty surrounding the Sustainable Farming Scheme (SFS).
“This cumulative approach has created despair in the countryside,” the letter continued. “As food supplies decrease, it will become more expensive, and the poorest in society will suffer the most.”
Gareth Wyn Jones, a farmer and broadcaster, expressed the emotional toll on rural communities:
“They’re destroying an industry already on its knees mentally, emotionally, and physically. We need government support, not hindrance, to feed the nation. Enough is enough.”
A strike as a last resort
As frustration boils over, some farmers have announced plans to go on strike starting Sunday. While economically challenging, the strike reflects the growing anger in the countryside.
The protest in Llandudno is part of a larger movement, with a major demonstration planned for Westminster next Tuesday. The event has already drawn so much support that its location was moved from Trafalgar Square to accommodate the expected turnout.
Starmer defends budget
Inside the conference, Starmer defended the Budget, describing it as a tough but necessary measure to stabilise the economy:
“Make no mistake, I will defend our decisions in the Budget all day long. Tough decisions were necessary to protect the payslips of working people, fix the foundations of our economy, and invest in the future of Wales and Britain.”
Starmer also hailed Labour’s collaboration between Westminster and the Welsh government as a “gamechanger,” promising that communities in Wales would benefit from Labour-led governments pulling in the same direction.
Investments and promises
Despite the protests, the conference included announcements of major investments:
- A £160 million investment zone for Flintshire and Wrexham, described by Starmer as a turning point for the region’s economy.
- An additional £22 million to tackle NHS waiting lists in Wales, adding to the £28 million pledged earlier this year.
- A record £21 billion Budget allocation for Wales in 2025.
First Minister Eluned Morgan touted the “power in partnership” between the two Labour governments and emphasised their commitment to delivering for Welsh communities.
Farmers and rural advocates insist that their voices will not be ignored. The inheritance tax changes have become a flashpoint for broader frustrations with government policies affecting rural areas.
As the protest letter concluded: “Prime Minister, we ask that you revisit the whole approach to farming and rural communities as a matter of urgency. This is a last resort, but growing anger in the countryside has brought us here. The one thing Labour has achieved is uniting farmers, businesses, and rural communities against these policies.”
With protests expected to intensify in the coming days, the farming community’s fight for their livelihoods and the future of rural Wales continues.
Farming
Welsh Government could overturn Ceredigion cattle breeder’s house plans
A CEREDIGION councillor-backed scheme by one of the top breeders of Limousin cattle in the UK to build a home near Lampeter could be overturned following a call for it to be decided by Welsh Government, planners heard.
At the October meeting of Ceredigion County Council’s development management committee, the application, by Mr and Mrs Dylan Davies for a four-bedroom rural enterprise workers’ dwelling at Blaenffynnon, Llanwnnen, Lampeter, where they run a calving and cattle rearing business, was backed despite an officer recommendation for refusal.
One of the issues in the report for members was the financial test of whether the scheme was affordable, based on an estimate the building would cost some £292,000 to construct; at a 25-year mortgage amounting to £20,400 a year.
The size of the proposed building – which the applicants say include a need to entertain and occasionally accommodate clients – was also given as a reason for failing the TAN6 policy test, being larger than affordable housing guidance, at 202 square metres rather than a maximum of 136.
Members have previously heard the applicant breeds high-value show cattle for embryo transplanting at the well-established business, with one bull alone selling for £32,000 last year.
It had previously been recommended for refusal at the September meeting, but was deferred for a ‘cooling-off’ period to seek further details along with potential changes to the size of the scheme.
At the October meeting, members backed approval despite officers saying the size proposed could actually include a two-person bungalow in addition to the normal maximal ‘affordable’ size.
At the start of the November meeting, members heard a request for the scheme to be ‘called-in’ for Welsh Government final decision had been made, meaning Ceredigion planners’ approval could potentially be overturned if the ‘call-in’ is agreed.
Farming
Welsh Government pressed on impact of new farming tax
THE Welsh Government have been urged to clarify how many farms in Wales will be affected by the Family Farm Tax.
The calls come after farming unions rebuked claims from the UK Labour Government and Welsh Secretary Jo Stevens that only a minority of farmers will be affected by the new inheritance tax rules.
The UK Labour Government has come under heavy criticism following the announcement by Chancellor Rachel Reeves that farmers would have to pay a 20% tax on farms worth more than £1m.
When questioned on Sunday Politics about the potential impact of the new tax laws on Welsh Farmers, Welsh Secretary Jo Stevens claimed that “Three quarters of farmers will be unaffected”.
The treasury has yet to publish an estimate around the impact that the new tax laws will have on Welsh farms.
Both the FUW and NFU Cymru have expressed their concerns at the changes made by the UK Government, stating that it will cause “lasting damage to Welsh farming.”
The Welsh Lib Dems have now called on the Welsh Government to clarify how many farms in Wales will be impacted by the new Family Farm Tax rules.
Party leader Jane Dodds MS has written to the Cabinet Secretary for Climate Change and Rural Affairs Huw Irranca-Davies to express her concern over the “untold damage that farming communities throughout Wales will face as a consequence of the UK Government’s most recent budget”.
In the same letter, Jane Dodds MS pressed Mr Irranca-Davies to confirm how many Welsh farms will be affected by the new inheritance laws.
“We cannot afford to leave our farming communities in the dark when it comes to the impact of this potentially devasting new tax law” said Jane Dodds MS.
Both our farmers and the Welsh Public deserve to know the truth that lies behind Labour’s claims that only a small amount of farmers will be impacted by the Family Farm Tax. Claims that, I should add, have already been disputed by both NFU Cymru and the FUW.
The uncertainty surrounding these new inheritance laws will place more unnecessary pressure on farmers across Wales, many of whom are already struggling under a cloud of financial pressures.”
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